American Strategic Investment Co. (NYSE:NYC) told investors last week that it took a $150,000 impairment charge at the property, suggesting that retail space may soon be sold. Closing the sale would mean a cash infusion for American, which never mortgaged the property, providing it with needed cash to cover ailing loan obligations at some of its 1.2 million square feet of office and retail space in New York City.

A new owner would decide whether the Hit Factory?s retail space, with its angular acoustics and nostalgic control rooms, will remain faithful to its musical heritage. The sale of the retail space would help American shore up its loan obligations at 1140 Sixth Avenue, a 250,000-square-foot office building where it has breached a debt service coverage agreement and a reserve fund provision on a CMBS mortgage secured by the building. American has also breached a debt service coverage ratio at 8713 Fifth Avenue, a 14,000-square-foot office building in Brooklyn, according to its latest financial disclosures.

The company did not return a request for comment.